The moment borrowers had been waiting for finally came last month when the Federal Reserve reduced its federal funds rate for the first time in four years. With inflation cooling significantly from recent years, the Fed felt secure in cutting rates — and they could cut them again in November and December, too. While this is great news for borrowers contending with higher rates on everything from mortgages to credit cards, it’s a detriment for savers who have been earning big returns.

With a certificate of deposit (CD) account, savers have been able to earn a rate of 4% to 5% or higher. And while an interest rate cut will inevitably reduce what savers can earn with CDs, the rate climate hasn’t adjusted so dramatically to diminish the value of today’s top CDs yet. It just may take a little more work to earn a big return than it would’ve at an earlier point in 2024, for example. Below, we’ll break down three ways savers can earn big CD returns now, even as interest rates are cut.

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How to earn big CD returns as interest rates are cut

While the September rate cut hasn’t significantly changed what you can potentially earn with a CD, it’s a good idea to take action now, before that does happen. Specifically, right now savers should:

Shop around

The highest CD interest rates are generally found with online banks versus those with physical locations. And that’s not any different now, even though additional interest rate cuts are looming. So start shopping around online to see what you can lock in. Because online banks don’t have the expenses that banks with physical locations do, you’ll generally be able to find a higher rate by looking for an online lender. Even a slight difference in rates could add up to big savings over the full CD term.

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Open a long-term CD

A long-term CD doesn’t come with as high an interest rate as a short-term CD does right now — a direct opposite of historic norms. But the difference is negligible and you can still secure a rate of 4% or higher with a long-term CD. And by opening one now, you’ll be able to earn big returns for an extended period of 18 months or longer, even as the wider rate climate cools. That fixed rate is a major advantage, especially compared to the volatility that traditional savings accounts and high-yield savings accounts come with thanks to their variable rate structure.

Consider a larger deposit

The more you deposit into a CD, the more you stand to earn. A $5,000 deposit into a 5-year CD with a 4.35% rate will result in an almost $1,200 profit. If you double your deposit, you’ll double your profit. But even a short-term CD with a substantial, five-figure deposit could result in hundreds of dollars earned over a brief period. Just remember to limit your deposit to an amount you’re comfortable leaving in the account untouched for the full term or you could risk having to pay a hefty early withdrawal penalty to regain access to your funds.

The bottom line

While interest rates have been reduced, they haven’t been cut so dramatically that they diminish the benefit of a CD account. But that doesn’t mean savers should wait much longer to act, either. Instead, start shopping around now to find a CD offering the highest rate. Consider a long-term CD to maintain those high returns even as rates fall and look to deposit a larger amount to capitalize on the opportunity while it still exists. By taking these steps now, you can earn big returns immediately and, potentially, for multiple years to come.